"Most disturbing to Washington was the withdrawal of Australian troops from Vietnam, the support of Palestinian rights, and the proposal of an Indian Ocean zone of peace.
Worst of all, Whitlam hinted that he might shut down a number of American military bases, including Pine Gap.
When CIA Director William Colby petitioned his counterpart at MI6, Sir Maurice Oldfield, for help, he stressed that Australia was traditionally Britain’s domain and that if Pine Gap were closed, the alliance would be blinded strategically.
Unbeknownst to Australia's new Prime Minister, the Australian Security Intelligence Organisation (ASIO) had not only been working closely with the CIA, they had been illegally passing on dossiers, concerning every member of the Labor Party, as well as union leaders, peace activists, and other Australian citizens.
A slush fund was set up to provide money to both opposition parties, via the Nugan Hand Bank, a CIA front company.
This was followed up by a promise to the main opposition Liberal Party of unlimited funds ..."